Corporat Plan Ntpc-final

7/31/2019 Corporat Plan Ntpc-final

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CORPORATE PLAN OF NTPC

By S.N.TRIPATHI


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PRESENTATION OUTLINE

PLANNING PROCESSADOPTED BY NTPC

15 YEAR CORPORATE PLAN

(2002-2017)


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PLANNING PROCESSADOPTED BY NTPC


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*Reportingdirectly to D(HR)

E.D. (CP)

New ProjectsDISHA Strategic

Planning

Corporate

Affairs

WEC-IMC

Secretariat

Implementationof Project DishaRecommendations

Single Windowfor all NewProjects(including hydro)

Coordination

with Powegrid Multilateral

funding Annual Plans

Corporate Plan 5 year Business

Plans Environment

Scanning

Policy Advocacy ECM/MCM External MOUs Internal MOUs

Interfacing withMOP

QPR Parliamentary

Committees

ForeignDeputations VIP References Presentations on

NTPC Reports, Writeup Navratna review

Singlewindow forWEC-IMCactivities

Coordination

cell forAwards &Rewards forExcellence(CARE) *

In addition PQs and VIP visits are handled on rotation basis

Present Structure and Functions of CP

The CorporatePlanning deptt. wasset up immediatelyafter the formation ofNTPC in 1975.

With the growth of NTPC andchanging business environment,the functions and structure of the

department has been undergoingperiodic changes to meet the newrequirements


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The success of the planning

process hinges on:

vision of the CEO in setting the

right destination,

Involving right people having

right skills in the planning

process,

Using right forecasting

models/tools

Integrating implementation

mechanism with the planningprocess

Providing warning signals at

right time to facilitate timely

corrections to the Plan

How do we

reach our

destination?

(Strategic

Planning) Where do wewant to reach?

(our

destination)

Currently where we

are?

The

PlanningProcesses

Key to success of Planning Process


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Past Performance Appraisal

Strengths and Weaknesses

Business Environment Appraisal

Opportunities and Threats

Vision, Mission, Values and Objectives

Business Portfolio and Functional Strategies

Financial Modeling for next 15

years to determine availability of

funds

Capacity Addition scenarios

Plan implementation

Strategies

Inputs from Project Disha

recommendations finalised

after intensive discussions

Planning Model used by NTPCfor formulating its Corporate Plan


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NTPC follows a collaborative approach to formulate its Corporate Plan. Forfinalising Corporate Plan (2002 to 2017), inputs obtained during project Disha

(ORGANISATION TRANSFORMATION STUDY) were widely used.

Top Management

External stakeholdersPlants and regional

office 12 different plantscovered duringvarious phases

Presentation made in

NBC at Manesar Presentations madeto NEFI also

Corporate and ROs

Project-Team

Key organisational issues

Validation of findings

Customers Regulator Ministry of Power Planning Commission

CEA Lending institutions Suppliers Industry Players Scope, EOC, R&D, PMI, WRO, NRO

Information gathering, discussion ondata analysis and findings

125

sessions

12 plants -Over 600 people met 30 sessions

900

meetings


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TIME FRAME OF NTPC CORPORATE PLAN

In view of long gestation period from concept to commissioning of powerprojects, NTPC follows a 15 years planning cycle for formulating itsCorporate Plan

The first corporate plan was approved by NTPC for the period 1985-2000. Post 1991, the economic and power sector environment started witnessing

rapid changes due to which business case assumptions made in firstCorporate Plan became largely invalid:

Several projects identified by NTPC in its corporate plan were shifted to IPPs

The realization of dues assumed serious concern, resulting in paucity of investible funds.Moreover, the world bank, indicated that it would be averse to giving more funds to thecompany unless it brought down its outstanding receipts to less than 2 months ofreceivables.

The government stopped budgetary support

Transmission business transferred to Power Grid in 1991.

In view of the above fundamental and rapid changes taking place in thebusiness environment, it was decided that the while the First CorporatePlan needs to be revised, the planning philosophy also need to be modified.

The second Corporate Plan: looking ahead (1997-2012), approved by NTPC

board in July 1998 envisaged 5 year rolling planning concept. While thePlan was made for 15 years, it was a detailed Plan for the first 5 years andonly directional plan for next 10 years. It was also approved that every five

year the Plan would be rolled for next 15 years In line with the new planning philosophy, third Corporate plan for the

period 2002-2017 has been approved by NTPC Board in July 2003.


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PLANNING PROCESSADOPTED BY NTPC15 YEAR CORPORATEPLAN (2002-2017)


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Sections of the Corporate Plan

Section 1: The Corporate Agenda (Vision,Mission, Objectives, Values)

Section 2: Review of Past Performance Section 3: Changing Business Environmentand Expected Future Trends

Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies


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Section 2: Review of Past Performance Section 3: Changing Business Environment

and Expected Future Trends Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies


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Vision

A world class integrated power major, poweringIndias growth, with increasing global presence

Mission

The Corporate Plan of NTPC has been aligned with the Visionand Mission of NTPC and is built upon eight pillars

Objectives

Research

&

Develop-ment

Customer

focus

Business

portfolio

growth

Susta-

inable

Power

Develop-ment

Financial

soundness

Agile

corpor-

ation

Perfor-

mance

leadership

Human

Resource

Develop-

ment


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Redefined Mission

Make available reliable and quality power in increasingly large quantitiesat competitive prices and ensure timely realisation of revenues

Adopt a broad based capacity portfolio including hydro power, LNG,

nuclear power, and non-conventional and eco-friendly fuels Plan and speedily implement power projects using state-of-the-art

technologies Be an integrated utility by implementing strategic diversifications in areas

such as power trading, distribution, transmission, coal mining, coalbeneficiation etc

Develop a strong portfolio of profitable businesses in overseas markets

including technical services, generation assets etc Continuously attract and develop competent and committed human

resources to match world standards Lead fundamental and applied research for adoption of state-of-the-art

technologies, breakthrough efficiency improvements and new fuels Lead developmental efforts in the Indian power sector including assisting

state utility reform, policy advocacy etc

Be a socially responsible corporate entity with thrust on environmentprotection, ash utilisation, community development, and energyconservation

Objectives


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and Expected Future Trends Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies

GLOBAL STATURE


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NTPC ranks sixth among the top ten global thermal generators

501

175152

146 141 133 128 126102 94

0

100

200

300

400

500

600

RAO-UES(RUS)

ESKOM(SAF)

KEPCO(SKR)

AEP(US)

SouthernCo(US)NTPC

ENEL(ITA)

TEPCO(JAP)

TVA(US)

RWE(GER)

TWH 2001

GLOBAL STATURE

Source: A.T. Kearney


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POWERFUL PERFORMANCE IN PROJECT EXECUTION

0 10 20 30 40 50 60

Singrauli

Vindhyachal-2

Simhadri

Talcher- IIRSTPP-III

Vindh-3

594839

383738

500 MW UNITMain Plant Award to Syn (months)

Reducing Project Completion Time

1986

1999

2002

2003

2004

Impressive financial performance


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Impressive financial performance

0

5000

10000

15000

20000

25000

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

2001-

02

2002-

03

2003-

04

TURNOVER

INT. RESOURCES

PROFIT

Years

Rs. 18871.2 Cr.

Rs. 7283.94

Rs. 5260.78

Rs. Crores


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COMMERCIAL PERFORMANCE

89.8% 89.60%

76.70%

92.30% 100.00% 100.00%

0

10

20

30

4050

60

70

80

90

100

1996-97 2000-01 2001-02 2002-03 2003-04 2004-05

Realisation of Current Dues (%)

HRM initiatives undertaken by NTPC have translated into


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GENERATION PER EMPLOYEE

4.63

6.11 6.266.58

7.11 7.43

0

1

2

3

4

5

6

7

8

1996-97 2000-01 2001-02 2002-03 2003-04 2004-05

Years

MUs

HRM initiatives undertaken by NTPC have translated into

significant productivity gains

Man-Mw Ratio Over the Years


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Man-Mw Ratio Over the Years

Man-

MwR

atio

0.71

0.56

0.61

0.49

0.6

0.47

0.56

0.46

0.57

0.41

0.53

0.38

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1996-

97

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

O&M Non-O&M

1.27*

1.10*1.07* 1.02* 0.98*

*Total (O&M and Non-O&M)Man MW Ratio excluding Badarpur and JVs/Subsidiaries

Year

0.91*

Turnover/Employee


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45.96

89.46 84.00 89.48 89.90

105.07

0

20

40

60

80

100

120

1996-97 2000-01 2001-02 2002-03 2003-04 2004-05

Rs. Lacs

Turnover/Employee

Year

PROFIT PER EMPLOYEE


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7.85

17.5416.63 16.85

25.09

27.11

0

5

10

15

20

25

30

1996-97 2000-01 2001-02 2002-03 2003-04 2004-05

Rs. Lacs

Year

PROFIT PER EMPLOYEE


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*BADARPUR TPS at DELHI is owned by GOI and is managed by NTPCsinceAPRIL78.

Turnaround CapabilityAchieved turn-around in performance of stations taken over from State Electricity

Boards through application of and strict adherence to well laid down Management and

Operation and Maintenance principles.

Station Taken-over on PLF(%)

Prior to

Takeover

PLF(%)

During

2003-04

PLF(%)

During

2004-05

Tanda January 2000 14.90 75.32 86.07Talcher June 1995 18.70 67.78 79.33

Unchahar February 1992 18.02 87.43 92.15

Badarpur April 1978 * 31.94 87.67 88.45

Continuous Excellent rating under MOU


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g

NTPC has achieved targets for

EXCELLENT rating under the

Memorandum of Understanding (MOU)

signed with GOI for all the EIGHTEEN

(18) years up to 2004-05 since

inception of the MOU system.

Acclaim from World Bank


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NTPC IS THE SINGLE LARGEST BENEFICIARY OF WORLD BANKFUNDING (US$ 4 Bln.)

World BankPresidents speech at Singrauli in August 1985

You are on time; you are within budget and you are generatingprofits. These are all phenomena and characteristics that theWorld Bank likes to be associated with.

Performance Audit Report : 1993

NTPC has demonstrated that Government owned powerutilities can be operated at efficiency levels comparable to

those of privately owned utilities in India and well run utilitiesoutside of India.

Implementation Completion Report : 2000 (WB LOAN 3632-IN)

NTPC is a mature utility and has demonstrated that it canachieve technical performance parameters comparable with

those achieved elsewhere in the world. It has developed acorporate culture based on professional pride of doing thingswell through a highly motivated staff. NTPC has grown anddeveloped over the course of this investment into a power

producer of international repute and a potential force for

GROWTH PLANS AS ENVISAGED IN THE CORPORATE PLAN :


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GROWTH PLANS AS ENVISAGED IN THE CORPORATE PLAN :LOOKING AHEAD (1997-2012) ARE ON THE CHARTED TRACK

CapacityAddition

Diversification ConsultancyServices

Multi-prongedGrowth Strategy

Greenfield

Projects

Expansion

Projects

Takeovers

Joint Ventures

R&M

LNG

Hydel

Domestic

International


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As laid down inLooking Ahead,

NTPC is surgingahead to become a

50,000 MW plusCompany by 2012

As envisaged in Corporate Plan Looking ahead-2012


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As envisaged in Corporate Plan Looking ahead-2012 NTPC has diversified into various related areas and is

launching new initiatives for ensuring growth

FORWARD

INTEGRATION

(Distribution business,

Power trading)

LATERAL

INTEGRATION (Hydro

projects, Small Hydel)

BACKWARDINTEGRATION

(Captive mining of

coal, Coal washery,

Sourcing of LNG)

DIVERSIFICATION

(JVs & strategic

alliances)

Key Strengths


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Largest market share in domestic power generation and a broad customerportfolio across the country

Excellent track record of performance in project implementation and plantoperations

Diversified thermal generation portfoliomultiple sizes and fuel types

Highly skilled and experienced human resources, exposed to state-of-the-arttechnologies in project execution and power generation

Navaratna status

High brand equity among stakeholders

Strong balance sheetability to raise low cost debt Engineering skills in project configuration and package design

Turnaround ability for old plantsdemonstrated in the takeover plants ofTalcher, Tanda and Unchahar

High credit rating that is indicative of the confidence of lenders

Established systems and procedures to institutionalise excellence in businessoperationsreceived ISO accreditation in several functions/areas

In-house training facility (PMI), CENPEEP, R&D, etc that assists in developmentof the sector

Thrust on reducing social costs of capacity growthstrong execution ofResettlement and Rehabilitation plans

y g

Key Weaknesses


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Low risk-diversification of business portfolio: Consists primarily ofgeneration assets

Functional orientation hampering cross-functional perspective in

decision making Long and multi layered procurement process leading to long lead times

and process delays

Fragmented IT architecture

Gaps in HR systems such as performance management, rewards and

incentives and career development Inadequate deployment of a strong knowledge management system that

could assist in improving efficiency and effectiveness in all aspects of thebusiness

Hierarchy for decision making that affects responsiveness

Role ambiguity and dilution within different levels of the organisation

Key Weaknesses

Strategies to address most of these weaknesses have been drawn up as a part of ProjectDisha. These have been included in the relevant sections of the Corporate Plan


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and Expected Future Trends(Opportunities and Threats) Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies

The changing business environment was studied to identify the


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The changing business environment was studied to identify the

imperatives for NTPC

Key analysis carried out

Studied the emerging regulatory and policy environment

Key changes in policies reviewed

Imperatives for NTPC identified

Changing customer environment

Emerging customer environment and key reforms being carried out

Scenarios for financial health of key customers were identified and imperatives for NTPCidentified

Changing fuel scenario

Comprehensive model for assessing competitiveness of different fuels in various locationswas developed

Scenarios for availability and pricing of different fuels were developed

Thermal fuel strategy for NTPC was developed

Alternate sources of power were studied. These include :Hydro power

Nuclear power

Non-conventional sources e.g. solar, co-generation, wind

Potential future sources such as Fuel cells etc.

Key Opportunities for NTPC


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Expand generation capacities by putting up thermal and hydro capacities,

maintaining the position of a dominant generating utility in the Indian power

sector

Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear

power etc with a view to mitigate fuel risks and maintain long run

competitiveness

Lead the development and commercial deployment of non-conventional energy

sources especially in the distributed generation mode

Expand services for EPC, R&M and O&M activitiesin the domestic as well as

international markets

Backward integrate into fuel management to exercise greater control and

understanding of supply economics

Improve collections by trading, direct sale to bulk customers and active role in

capacity allocation in new plants

Execute increased number of power plants that classify for Mega Power Project

status, thereby reducing the cost of projects and power generated

Forward integrate into the distribution business in India

y pp

Key Threats to NTPC


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Limited experience of operating in a truly liberalized environment withcompetition

Limited experience of operating in an independently regulated system

Delayed SEB reforms and continuing financial ill-health

SERCs might mandate lower off take for slow-reforming states

Redirecting power may be constrained by inter-regional connectivity

Downward regulatory and competitive pressure on tariffs

Possibility of issues of coal non-availability as coal supply agreements of CIL

with the State Gencos and IPPs evolve Lower than expected availability of gas

Stringent norms for approval of increase in capital costs for projects in eventof time overrun

Stringent norms for the utilisation of ash generated by power stations in theabsence of adequate demand from user industries and due to the high cost of

transportation of ash

Stringent environmental norms in the future may add to the cost of generation

Absence of an independent regulator for coal industry and the delay in privateinvestments leading to the risk of low availability of coal in the future


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In order to set indicative targets for 2017 we have


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In order to setindicative targets for 2017, we havelooked at three dimensions

Business

portfolio

Domestic generation portfolio

Coal mining and washeries

NTPC

in 2017

Distribution and trading

Organization

Corporate profile

Ownership

Turnover

Leading sector developmentsSectoral

leadershipTechnological leadership

Globalization

People

Key Dimensions Key Elements

Domestic Generation Portfolio
http://linked%20file-planning%20process.ppt/


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NTPC would have increased its geographical presence within India

Pithead focus would continue for coal based

power stations

Increasing share of imported coal in the fuel

mix would lead to coastal installations in the

Southern and Western regions RNLG / Piped gas based plants would be

concentrated along the coast and/or along

the gas distribution infrastructure

Hydro power plants would be concentrated

in the Northern and Central regions with

some installations in the South as well

Nuclear power plants at strategic locations

NTPC would enhance its geographicalpresence by expanding into suitable

locations

In addition, NTPC would also have some generation capacities in international locations

Target for coal mining, washeries, distribution and


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trading businesses

Business Target 2017 Remarks

Coal mining 20 MTPA in operation

10-15 MTPA in

development

To be conducted on a JV/BOO basis and ramped up based on experience

to 20 MTPA by 2017 (Operations of 5 MTPA by 2009 and 10 MTPA by

2012)

In addition, 10-15 MTPA to be identified for production in the 13th plan

period

Coal washeries 75% of NTPCs

requirements

To be conducted on a JV/BOO basis

Business limited to meeting statutory obligations

The limitation of serving plants > 1000Km from pithead would be

reviewed periodically based on the economics and prevailing policies

Distribution ~2,000 MW NTPC to take a cautious approach to distribution

Also analysis of other markets reveals that regulator might not allow

generating company to have high interest in distribution

Trading 25% share in traded

energy

~35 BU by 2017

Setting up a national power exchange

Assuming about 10% of electricity in India to be traded in 2017

Transmission Linked to bulk

customers

Limited to sub-transmission lines to transmit electricity to a few large

bulk customers of NTPC power

RLNG Linked to sourcing

RLNG

Investment of minimum 26 % in regassification terminal

Consider investment in liquefaction terminal

NTPC would have a significant proportion of its


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NTPC would have a significant proportion of its

ownership held by the domestic and international

investors

Upto 50% nongovernment holding

Retail shareholders - India and international stock markets

Institutional investorsFIs, FIIs

Employee participation

In view of NTPCs strategic importance in the domestic energy sector,participation from strategic investor is not envisaged in NTPC

Listed in the Indian stock markets

Amongst top five market capitalisation in domestic market

Listed on 2-3 leading international stock exchanges

A Fortune 500 company

Respected Indian stock on international exchanges

NTPC group would have a turnover of over


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Rs. 1,400 Bn by 2017

Note: Rupee devaluation assumed at 4% p.a.

Source : AT Kearney Analysis

By 2017, NTPC would employ over 30,000 employees across different businesses including

generation, distribution

0

200

400

600

800

1000

1200

1400

1600

Sale to bulkcustomers

Sale to stateutilities

GenerationJV/Subs

Distribution Coal miningand washery

Technicalservices

Trading Total

Circa 2017: NTPC group revenues (in Rs. Bn)

Revenue computed at

electricity tariff, not

margins

In summary, NTPC would be a leading power utility


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in the world by 2017, in line with its current vision

NTPC in 2017

Fortune 500 company

An Indian MNC with presence in many countries

Diversified utility with multiple businesses

Amongst top five market capitalisation in the Indian market

Group turnover1 of over Rs. 1,400 Bn with 30000+ employees Setting benchmarks in project construction and availability and

efficiency

Have a strong research and technology base

Loyal customer base in both bulk and retail supply

Preferred employer

A leading corporate citizen with a keen focus on executing itssocial responsibility

Note: 1) Includes revenues projected for NTPC JVs and Subsidiaries


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Detailed functional strategies have been


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provided in the Corporate PlanGoals and Strategies have been detailed for the following functions

Services Marketing

Engineering

Project Management

Operations

Finance

Commercial

Human Resource Development

Information Technology

Goals and Strategies have been detailed for the following thrust areas Research and Development

Environment

Ash Utilisation

Resettlement & Rehabilitation Energy Conservation

CENPEEP

Corporate Communication


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and Expected Future Trends

(Opportunities and Threats) Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies

Comprehensive business plans should serve as an integrating link


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Strategic Plan Progress on overall business strategycapture of past performance against plan

Strategic intent for next 5 years

Operational Plan

One year firm performance targetstobe translated into internal MoU targetsfor that function/ division

Growth and other key targets for five

years Performance improvement plans

Implementation plans and keyimplementation milestones

Timing for new ventures

between the corporate plan, annual budgets and internal MoU targets

Long term corporate plan

Time

0 Years 15 Years5 Years 10 Years

MoU Targets

5 yr Rolling business plan

Y1 Y2 Y3 Y4 Y5

Annual Budgets

Y1 Y2 Y3 Y4 Y5

Contents of Business PlanStrategic Link

Operational Link

1st yr firm plan

KPA

The business plans of all regions and corporate functions would be


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Regions

Profit Centers

Engineering Consultancy PMI Subsidiaries CENPEEP

Thrust Areas

Ash Utilisation Environment Mgmt R&R

Corporate Communication R&D Energy Conservation

Corporate functions with resource impact

Finance Commercial HR

Other major corporate functions

Corporate Planning OS CMG CC&M Fuel Management IT

Preparation of 9 Key Business Plans

1. Plan for Plant Operations

2. Plan for New Capacity Addition

3. Plan for Financial Resources (Financial and

Commercial)

4. Plan for Human Resources

5. Plan for Profit Centers (Engineering,

Consultancy, PMI, CENPEEP, subsidiaries)

6. Plan for New Business Development

7. Plan for Thrust Areas (Functions defined as

thrust areas)

8. Plan for Renovation and Modernization (Of

NTPC stations)

9. Plan for IT

p g p

integrated into nine key business plans

Each business plan template consists of 5 key elements


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Interlinking within

the elements

Business Plan Summary

Corporate plan summary Strategies for next 5 years

Targets for first year

Resource requirements

Capital expenditure

Revenue expenditure

Manpower requirements

Level wise

Skill wise, whereverskill can be segregated

Targets

Quantitative targets for key

activitiesSpecific targets for first

year

Projected targets for next 4years

Strategic Projects /initiatives

Strategic activities

Timelines

Five key elements of the Business Plan

A cross-functional Pursuit team has been constituted for


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formulating business plans.

Sponsor

Director

[D(Pro)]

PT LeaderAGM (CP)

Cross functional

pursuit team

Structure of Planning implementation initiative (Business planning & Environment Scanning)

Initiative

Champion

(EDCP)

Disha Core

Team:

1 NTPC, 2 ATK

member

Nodal / lead officers

Apex Council

CP, OS, NCR, HR, CC&M,

Consultancy & JV, Engineering

While the business planning process was detailed further from the Disha recommendations, the

pursuit team invested significant time in developing templates to capture business outcomes

The draft business plan templates have been developed in a structured manner

and includes first cut feedback from concerned functions


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and includes first cut feedback from concerned functions

Draft templates

for different planareas

Develop draft

templates fordifferent plan

areas

Worksho

p within

thePursuit

team

MOU: External,

Internal

Draft KPAs

Preliminary plans

prepared in the

past

Inputs from

concerned

function

Approach for developing plan templates

A

Corporate Planand Disha

recommendations

Budget

Documents,

Annual plan

Subsequent steps included seeking feedback and inputs from concerned functions

and piloting of some selected Business Plans prior to finalisation of the templates


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p g p p

Develop draft

templates for

different plan

areas

Feed back &

inputs from

concerned

functions

A

B

Business

Plan

templates

ready for

pilot phase

Process

documentation*

and

communication

Pilot selected

Business

Plans**

Incorporate

learnings from

pilot phase in

BP templates

FinalisedBusiness

Plan

templates

Key steps in preparation of Business Plan templates

* In the form of a System Manual

**HR, Operations, New Capacity Addition, Commercial, Engineering being piloted

Incorporat

e learnings

from

workshops

The functional nature of the business plans is being driven by nodal points for each

business area through Regional EDs and Station GMs in a collaborative manner


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AUD

HR

NCA

Station 1 Plan

L3 plans

L2 plans

L1 plans

Ops.

AUD

HR

NCA

Station n Plan

Ops.

AUD

HR

NCA

Region 1 Plan

Ops.

Ops.

Plan

NCA

Plan

HR

Plan

AUD

Plan

Other

Plans

@ Includesresources fordeptts not covered in any

functional plans@

@ @

business area through Regional EDs and Station GMs in a collaborative manner

Nodal points,

supported by

nodal officer

Regional

plans, to

be signed

by RED

Station

plans, to

be signed

by GM

Other Other

The annual progress measurement would follow a four step approach


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Id

entifyissuesthatrequir

eattention

Annual Review

I IVII III

Apr. May. Jun. Jul. Aug. Sep Oct Nov. Dec. Jan. Feb. Mar

Monthly Meetings Self-review by the Stations and CC

functions

Minutes by Station to ReEDs

Emphasis on root-cause analysis andearly warnings

Early

Warning

Focus

Performance

EvaluationFocus

Review by nodal points

ReEDs review L2 plans

Status report on progress from nodalpoints to Corporate Planning

Mid-year Review

Mid-year review by Corporateplanning

Exception reporting in ECM/MCM

Quarterly Review

Monthly Review

I II

Mid-year Review

CourseCorrection

Focus

Annual Review

Annual Review

BPC would review progress of BPtargets and Internal MoU targets

Status inputs to be provided by nodal

points to Corporate Planning Status of progress would also be afactor in determining BP targets forthe subsequent years

Quarterly Review


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Thank you


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Objectives

To further consolidate NTPCs position as the leading thermal power generationi I di d t bli h i h d t

Objective 1 : Business Portfolio Growth


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company in India and establish a presence in hydro power segment

To broad base the generation mix by evaluating conventional and non-conventional sources of energy to ensure long run competitiveness and mitigate

fuel risks To diversify across the power value chain in India by considering backward and

forward integration into areas such as power trading, transmission, distribution,coal mining, coal beneficiation, etc

To develop a portfolio of generation assets in international markets

To establish a strong services brand in the domestic and international markets

Objective 2 : Customer Focus

To foster a collaborative style of working with customers, growing to be apreferred brand for supply of quality power

To expand the relationship with existing customers by offering a bouquet ofservices in addition to supply of power e.g. trading, energy consulting,

distribution consulting, management practices To expand the future customer portfolio through profitable diversification into

downstream businesses, inter alia retail distribution and direct supply

To ensure rapid commercial decision making, using customer specificinformation, with adequate concern for the interests of the customer

To ensure effectiveness in business decisions and responsiveness to changes in theb i i t b

Objective 3 : Agile Corporation


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business environment by

Adopting a portfolio approach to new business development

Continuous and co-ordinated assessment of the business environment to identify

and respond to opportunities and threats To develop a learning organisation having knowledge-based competitive edge incurrent and future businesses

To effectively leverage Information Technology to ensure speedy decision makingacross the organisation

To continuously improve on project execution time and cost in order to sustain longrun competitiveness in generation

To operate & maintain NTPC stations at par with the best-run utilities in the worldwith respect to availability, reliability, efficiency, productivity and costs

To effectively leverage Information Technology to drive process efficiencies To aim for performance excellence in the diversification businesses

To embed quality in all systems and processes

Objective 4 : Performance Leadership

To enhance organisational performance by institutionalising an objective and openf t t

Objective 5 : Human Resource Development


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performance management system

To align individual and organisational needs and develop business leaders by implementinga career development system

To enhance commitment of employees by recognising and rewarding high performance

To build and sustain a learning organisation of competent world-class professionals

To institutionalise core values and create a culture of team-building, empowerment, equity,innovation and openness which would motivate employees and enable achievement ofstrategic objectives

To maintain and improve the financial soundness of NTPC by prudentmanagement of the financial resources

To continuously strive to reduce the cost of capital through prudent managementof deployed funds, leveraging opportunities in domestic and international

financial markets To develop appropriate commercial policies and processes which would ensure

remunerative tariffs and minimise receivables

To continuously strive for reduction in cost of power generation by improvingoperating practices

Objective 6 : Financial soundness

To contribute to sustainable power development by discharging corporate socialibiliti

Objective 7 : Sustainable Power Development


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responsibilities

To lead the sector in the areas of resettlement and rehabilitation and environmentprotection including effective ash-utilisation, peripheral development and energyconservation practices

To lead developmental efforts in the Indian power sector through efforts at policyadvocacy, assisting customers in reform, disseminating best practices in theoperations and management of power plants etc.

To pioneer the adoption of reliable, efficient and cost-effective technologies by

carrying out fundamental and applied research in alternate fuels and technologies

To carry out research and development of breakthrough techniques in power

plant construction and operation that can lead to more efficient, reliable and

environment friendly operation of power plants in the country

To disseminate the technologies to other players in the sector and in the long run

generating revenue through proprietary technologies

Objective 8 : Research and Development

Services Marketing

G l

Strategies:


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Goals:Develop a portfolio of services for the domestic and

international markets

Engineering of new projects

Operations & maintenance services

R&M services for power plants

Contracting and procurement services, R&D services and

Training services

Focus on markets in Asia-Pacific including India, initially. In

addition, take an opportunistic approach towards the Middle

East and African markets

Establish a separate Services Marketing division for marketing

the identified services

Establish dedicated sales and marketing groups

International sales offices in identified countries

Regional sales offices

Enter into Joint ventures and strategic alliances with

internationally reputed organizations

Adopt best in class systems for internal process improvements

Develop a strong

footprint for services

business in the domesticand international

markets

Leverage the resident

intellectual capital and

skills in technical

services and

management systems foradditional revenue

generating opportunities

Target annual revenues

of about Rs 700 Crores

in global markets and

about Rs. 500 crores in

the domestic market by2017.

Engineering


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Goals:

Strategies:

Improve the efficiency of internal processes

Improve manpower planning, allocation and

monitoring processes

Thrust for R & M engineering activities

Strengthen Hydro engineering skills

Set up an Engineering quality assurance cell

Drive the adoption and absorption of state-of-the-

art technologies through a dedicated Power

Technology Centre

To constantly upgrade the competency of

Engineering personnel

Provide efficient and quality

services in Engineering

Transform the Engineering

division into a cost centre by 2005

and a profit centre by 2007Champion the adoption of state-of

the-art technologies, and address

environmental priorities through

inputs for adoption of clean coal

technologies, and renewable and

non-conventional sources

Project Management

Goals: Strategies:


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Set-up power plants in line with

international benchmarks on lead time and

budgeted costs :Achieve commercial operation of

greenfield 500 MW coal based unit with

a schedule of forty-five months from

the date of investment approval with an

interval of six months for subsequent

units

Achieve commercial operation of gasturbines with a schedule of twenty

months from the date of investment

approval with an interval of two months

for each succeeding unit

Achieve commercial operation of steam

turbines for gas plants with a schedule

of thirty months from the date of

investment approval with an interval of

four months for each succeeding unit

Improve transparency of project schedules

Continuously upgrade internal systems of

contracts, site execution and engg. division

standardization and automation of key processes

Proactively manage quality assessment and

support for vendors

Create a dedicated Systems and Policy group

in Projects function to carry out benchmarking

and environment scanning for adopting bestpractices.

Create of a Project Supports Group in Projects

function to improve the coordination across

projects and associated functions.

Introduce project management (Scheduling and

Monitoring) for R & M activities.Separate Hydro group for development,

execution and operations of hydro projects

Operations

Strategies:


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Goals:

Strategies:

Operate and maintain NTPC

stations at par with the best-

run utilities in the world with

respect to availability,

efficiency, productivity and

costs

Align O&M and support

processes with relevant best

practices

Provide resources and inputs

for various elements of O&M

and R&M services and other

services business

Set targets based on international benchmarking

exercise and monitor performance through the

planning and review processContinuously upgrade systems to maintain high

operating performance

Lay foundation for developing alternate maintenance

strategies

Improve support processes

Optimise inventory levels

Technical support to operating stations

Develop databank of equipment maintenance history

Support Services Marketing in developing and

executing projects related to O&M and R&M services

Renew thrust on execution of R&M activities

Role of fuel management in developing alternate fuel

strategies

Finance

Strategies:


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Goals:

g

Generate resources to finance the

equity portion for NTPCs

capacity addition program

Tap domestic and international

markets to borrow funds at most

competitive rates

Seek to effectively deploy higher amount of

shareholder returns

Raise equity resources from public at appropriate

time

Strive to reduce project costs by addressing interest

during construction

Have prudent debt:equity ratios for projects

Manage borrowing portfolio to ensure low cost of

funds and cash flow matching

Undertake tax planning

Commercial

Goals: Strategies:


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Work proactively with the

Government and Regulatory

Agencies for evolving tariff

policies and principles which

enable fixation of remunerative

tariffs for mobilisation of

adequate resources to meet

national power plans

Design and implement strategies

for cash generation throughprompt billing, improved

collection of revenues and

developing and operating more

bankable contracts

Strengthen customer

relationships to prepare for a

future competitive scenario

Working with the Government and Regulator on

issues related to tariff policy and principles

Design incentives and disincentives for customers

Securitise of outstanding dues

Ensure contractual and structural interventions

Improve speed of commercial decision making

Work with the customers and increase customer

focus

Human Resources Management


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Goals:

Strategies:

Actualise the HR vision of enablingNTPC employees to be a family of

world class professionals making

NTPC a learning organization

Enhance organisational

performance and commitment of

employees by recognising and

rewarding high performance

Build a competency based

organisation

Institutionalise core values and

create a culture of team-building,

empowerment, equity, innovation

and openness which would motivateemployees and enable achievement

of strategic objectives

Competency building measures

Revised Performance Management System

Leadership development

Integrated career planning, development and

succession planning

Training and development , e learning and

global exposure

Commitment building measures

Enabling organisational climate

Rewards and recognition

Culture building measures

Core values actualisation

Communication

System building measures

Benchmarking

Knowledge Management system

Information Technology


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Goals: Strategies:

Support growth in generationcapacity by IT enabling project

management efforts

Support diversification into new

business areas by supporting related

strategic planning efforts and

providing seamless interface with

existing organisation

Facilitate operational excellence by

enabling management control

through data/ information aided

decision making, reducing cost and

improving personnel productivity

Facilitate stakeholder (internal and

external) management through

information dissemination,

knowledge management and other

training tools

Implementation of ERP

Implementation of add on packages

Strengthening the communication network

Strengthen e-mail facilities

Develop and implement intranet and extranet

strategy

Develop and implement MIS system

Develop and implement e-procurement strategy

Develop demand forecasting and CRM tools

Thrust Areas

Thrust area Goals


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CENPEEP

To help in the acquisition, demonstration and dissemination of state-of-the-

art technologies and practices to improve availability, reliability, efficiency,

environment compliance and reduce green house gas emissionTo become a profit centre by 2006, offering services related to technology

transfer and absorption

Ash UtilizationPursue achievement of stipulated norms for ash utilisation laid down vide

Gazette notification (1999) for existing and new thermal stations

Environment

management

To set standards and monitor the environmental compliance of NTPC stations

To set standards and monitor preservation of natural ecology in the vicinity

of the stations

To ensure that all stations of NTPC acquire ISO 14001 accreditation

To continuously track and provide inputs to relevant government policies and

adapt NTPCs policies accordingly

R&RPrepare detailed Rehabilitation Action Plans (RAPs) for all projects and

ensure timely implementation of the same prior to the commencement of

commercial operation of the stations

Detailed strategies for the thrust areas have been outlined in the plan

Thrust Areas


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Thrust area Goals

R&D

Support NTPC stations in addressing key problems being faced and in

improving their performance through failure analysis and applied research

Conduct fundamental research in alternate fuels, non-conventional energy

sources and new technologies

Develop commercial options for distributed power generation

Generate revenues by providing the results from fundamental and applied

research to other domestic players

Corporate

communications

To present and enhance NTPC's Corporate Image among internal and

external stakeholders including the end-consumers

Support development of a strong brand in the domestic and international

market

EnergyConservation

To comply with statutory requirements of Energy Conservation Act, 2001

To develop and deploy cutting edge energy conservation practices,especially in area of power generation

Detailed strategies for the thrust areas have been outlined in the plan